Intel has struck a landmark agreement with the United States government, granting Washington a 10 percent stake in the company, according to a joint announcement by the tech giant and President Donald Trump.
The deal stems from Trump’s demand that Intel provide equity in return for major federal grants initially approved during Joe Biden’s administration.
Under the arrangement, the government will acquire 433.3 million common shares, representing roughly 9.9 percent ownership, valued at about $8.9 billion. The investment will be covered by $5.7 billion in outstanding CHIPS and Science Act grants and $3.2 billion from Intel’s Secure Enclave program, on top of the $2.2 billion in CHIPS funding the company has already received—bringing the total to $11.1 billion.
“The United States of America now fully owns and controls 10% of Intel,” Trump declared on Truth Social, adding that the country “paid nothing for these shares” after negotiations with Intel CEO Lip-Bu Tan.
Intel clarified that the government’s stake will be purely passive, with no representation on the board or influence over company governance.
Commerce Secretary Howard Lutnick hailed the deal as a “historic step” to solidify America’s leadership in the semiconductor industry.
Still, some analysts raised concerns. Independent tech analyst Rob Enderle cautioned it could mark “a slippery slope toward nationalization,” while Scott Lincicome of the Cato Institute warned that political involvement could undermine Intel’s long-term performance.
Intel CEO Tan reaffirmed the company’s commitment to ensuring “the world’s most advanced technologies are American made,” citing plans to invest more than $100 billion to expand US operations.
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